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Earlier today, I linked to a Goldman Sachs research note arguing that the most fiscally conservative outcome in the 2012 election would be an Obama victory and Republican control of Congress. But their analysis was limited to deficit reduction.
President Barack Obama will release a plan on Monday calling for more than $3 trillion in deficit cuts over 10 years, with about half of the savings coming from higher taxes on the wealthy and big corporations.
Democrats are going to lose this one. The first stage of the emerging deal doesn’t include revenue, doesn’t include stimulus, and lets Republicans pocket a trillion dollars or more in cuts without offering anything to Democrats in return.